David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. Bigfoot Capital. Decathlon Capital. Key elements: . “We

Revenue 60

Revenue Technical Review Software Review Equity 60

Berkonomics

AUGUST 3, 2023

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup. For those of you who fit that description, nice work.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Both Sides of the Table

JUNE 19, 2017

The Basics The starting point — the 101 — is knowing the difference between gross burn and net burn. Gross burn is your cost base and net burn is the difference between your revenue and costs. GAAP Net Income, which at times isn’t a good reflection of cash burn). In short, it’s the amount of cash you’re burning every month (vs.

Burn Rate 212

Burn Rate Startup .Net Venture Capital 212

ReadWriteStart

MAY 18, 2012

“For the most part, VCs add very little value, so it’s not surprising that if you can get a high-liquidity, low-maintenance form of early-stage funding for your startup, that will pretty quickly push aside more traditional capital providers like bad VCs,” Kedrosky says. The early record on multiround financing is not good.”.

Venture Capital 140

Venture Capital Early Stage .Net Finance 140

Both Sides of the Table

MAY 24, 2021

This “overnight success” was first financed in 2004. He then went on the create an early-stage VC that I track closely?—? Entrada Ventures? —?that And FWIW, the final of my first four investments, all from this same fund, was, GumGum who recently announced it closed $75 million in financing led by Goldman Sachs.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

This is going to be BIG.

APRIL 29, 2011

At the same time, I had lunch with someone yesterday who regularly ran into early stage entrepreneurs who was surprised to hear that I didn't mind if they made intros to me. Bad intros usually include some service provider, like some high net worth management guy looking to get me to invest with him. Why did I need that?

Technical Review 114

Technical Review Early Stage Due Diligence Venture Capital 114

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? But should they?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. There is an exemption from the requirements that these investors be accredited with net worth or income minimums to qualify legally to invest in your company. Then there is venture capital.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Haystack

OCTOBER 2, 2019

Those of us in the early-stage tech ecosystem by now well know that saying “there are a LOT of seed and new startups” is a gross understatement. Doing them online removes the critical in-person touch that’s required (in my opinion) to assess at the early stages. 5/ Who Is On The Hook?

Deal Flow 106

Deal Flow Cap Table Early Stage Institutional Investors 106

Berkonomics

JUNE 8, 2017

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup. For you who fit that description, nice work.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Gust

OCTOBER 8, 2014

Cautionary note: No competent VC is actually fooled when you show up after raising $6M in seed financing and say you’re now raising an A! There weren’t a lot of seed funds in 2007 so this was often done by angels, funding consortia or sometimes early-stage funds that existed then (First Round Capital, True Ventures, SoftTech VC, etc.).

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Venture Capital Venture Capital Term Sheets Startups Term Sheets What are examples of good startup term sheets? Mark Suster • Nov 1, 2010 Here is a post on Brad Feld's blog on the seed financing docs he found, some of which you mention: [link] chives/.

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

K9 Ventures

MAY 14, 2011

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. I’ve talked about this on several occasions when I’ve been at conference and on panels, but I figured it would make sense to do a post explaining my taxonomy of the early-stage investing world.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Up and Running

JULY 1, 2015

You will most likely need a website, a technical team, a space to work from, and lastly enough money to pay your utilities while you embark on this new venture. All these requirements need to be financed. Many entrepreneurs use bootstrapping, which means financing your company by scraping together funds in unconventional ways.

Bootstrapping 60

Bootstrapping Angel Investor Venture Capital Finder 60

This is going to be BIG.

SEPTEMBER 19, 2012

I'm ecstatic to announce that Brooklyn Bridge Ventures has just completed a first close of $3.5 The funding was anchored by a major commitment from Two Sigma Ventures, the private venture investment affiliate of Two Sigma Investments. million of limited partner commitments--a huge and exciting first step.

LP 112

LP New York City New York Chad 112

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. ff Venture Capital hired two full-time engineers to build out Totem.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Eric Friedman

AUGUST 18, 2021

I lovingly call him the curmudgeon of fintech – in this episode we go deep into how he is building a venture capital firm and practice, not just running a fund and how he views the world of fintech investing. Today, we are lucky to welcome Dan Kimerling of Deciens Capital. Venture Capital is not a complicated business.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Rob Go

JUNE 8, 2014

Raising capital is really difficult, no matter what people say about the influx of seed and early-stage dollars into the startup eco-system. You get a large capital partner involved early who is fully committed to your company. The rationale for doing this is obvious.

Dilution 69

Dilution Early Stage Angel Investor Venture Capital 69

YoungUpstarts

JUNE 11, 2019

There are two statistics that matter the most when it comes to millennials and finance. The problem with this lies in the fact that, when it comes to the issue of business finance, knowledge matters far more than confidence. Source of initial capital. Finance advisor. Living the lifestyle. Taking it easy. Bankruptcy.

Finance 149

Finance Bankruptcy Startup Angel Investor 149

Both Sides of the Table

JUNE 8, 2014

Changes in the Software World & in Venture Capital. But notably you had the following changes: Horizontally scalable computing & storage systems, which meant you required less capital up front for hardware. Not all of these products & companies came from Silicon Valley but the overwhelming majority did.

Silicon Valley 390

Silicon Valley Kansas City Startup Venture Capital 390

David Teten

JANUARY 10, 2012

With a unique vision for starting and successfully managing innovative companies, he is the Managing Partner of Social Leverage, a holding company that invests in early stage web businesses. He holds a Master of Science in Finance from the London Business School and a Bachelor of Arts from Tulane University.

Technical Review 128

Technical Review Technology North Carolina Switzerland 128

Professor VC

SEPTEMBER 2, 2010

The fall semester at SJSU started this week and had the first class meeting of my Entrepreneurial Finance class, which was overflowing with students standing, sitting on the floor and begging to get in. Whether you buy this or not for public equities, the market for early stage private companies has always been wildly inefficient.

Angel Investor 28

Angel Investor Angel Groups San Jose Venture Capital 28

Startup Company Lawyer

MAY 26, 2012

In 2005, Kiva launched a micro-finance platform that allows people to lend small amounts of money to entrepreneurs in developing areas. 10 percent, not to exceed $100,000, of annual income or net worth of an investor, if either the investor’s annual income or net worth is equal to or greater than $100,000.

SEC 58

SEC Securities and Exchange Commission Accredited Investor Private Placement 58

Gust

OCTOBER 8, 2014

Financeable businesses require investors to believe that: 1) you will win at what you’re doing; and 2) the market in which you’re operating is worth winning. To raise capital as a very early-stage business, you have to convince investors that your current size isn’t indicative of where you will be in the future.

Venture Capital 163

Venture Capital Finance Early Stage .Net 163

abovethecrowd.com

FEBRUARY 24, 2015

Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

BeyondVC

OCTOBER 11, 2007

Companies that sell at the early stages should understand that while they may forego going big, if they do not sell today for strategic value then they would have to live up to their hype and be bought in the future for real revenue. At the end of the day, it comes down to two things. Secondly, it comes down to your passion.

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

NOVEMBER 15, 2013

At my firm, ff Venture Capital, we’re trying our part to rethink how the industry works, and also actively looking for opportunities to invest in companies creatively disrupting this sector, e.g., our portfolio companies Addepar and Indiegogo. I don’t think that a Net Present Value calculation is appropriate for every company.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Both Sides of the Table

AUGUST 17, 2009

2006 was the last time I went out to raise venture capital. I had multiple term sheets to do my Series A financing. This was pre Venture Hacks so not a lot of help on terms on the Net. Chris writes that early-stage deals should have: Founder vesting w/ acceleration on change of control.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

Steve Blank

FEBRUARY 26, 2020

For startups the early stage funding landscape looks like this: Step 1: The Pre-seed round – you raise $100-$750K. Btw, the definition of each startup financing stage has changed in the last decade. Series B is about proving your net revenue model (can you be profitable?). Step 5: Series, C, D….

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Austin Startup

JUNE 26, 2019

So, we worked to raise capital. Early on we reached out to friends & family. Turns out my network (of politicos and do-gooders) is not one of accredited tech investors (meaning they meet income and net wealth thresholds and choose to make investments at all, and specifically in startups). Get you some of that!

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

K9 Ventures

NOVEMBER 30, 2008

The business of venture capital is relatively young. The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot.

IRR 48

IRR Venture Capital LP Early Stage 48

Cracking the Code

OCTOBER 10, 2008

This single number is the key to determine your level of sales and marketing investment and is very simple to calculate by looking at a quarterly GAAP P&L: you just have to divide the annualized net gross margin added during the quarter by the sales and marketing costs of the previous quarter. Philippe Botteri. Bessemer SaaS Law #3.

Software Review 48

Software Review North America Europe Metrics 48

www.currentlyobsessed.com

MAY 28, 2010

Snapvine was my first experience being in the driver’s seat of the fund-raising process, and in the 3 years prior to our acquisition we raised over $10mm in venture capital. It hardly deserves any attention at all in the early stages. Or is it? I know this sounds crazy, but it’s not.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Rob Go

NOVEMBER 30, 2012

I was surprised to find that it has been more than two years since my post summarizing the state of the seed stage market, and trying to bring a balanced view on the rise of Super Angels and Micro-VC’s. The venture capital market continues to be in transition, and a lot of changes have occurred in the early stages of the market.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

techcrunch.com

FEBRUARY 19, 2010

Tweet View Comments Sarah Lacy Feb 19, 2010 Pepperdine has a new study out that attempts to shed some light on the clubby, shadowy world of private finance. Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. A lot of the stats weren’t surprising.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Growthink Blog

APRIL 2, 2012

While the crowdfunding portion of the bill still needs to go through SEC rule-making, the die is clearly cast that a whole new social networking – based world of start-up and small business investing and financing is coming fast upon us. So who will the winners be and who will lose ground once the new rules are fully live?

Disintermediation 72

Disintermediation Technical Review SEC Early Stage 72